Bank of America's flagship savings account still pays an annual percentage yield of 0.01%, a rate that has barely moved even as the Federal Reserve spent years holding its benchmark rate at elevated levels.
On a $10,000 balance, that works out to about $1 per year in interest.
The gap between what Bank of America pays and what online banks offer has rarely been wider.
Many FDIC-insured online accounts have been paying in the 4% to 5% range, meaning the same $10,000 could earn roughly $400 to $500 over a year elsewhere, depending on the account and balance tiers.
For a household with $20,000 parked in savings, the spread can add up to several hundred dollars annually — money that quietly disappears when the balance sits in a legacy account. **Why the big banks get away with it** Bank of America's advantage is convenience.
Branches, ATMs, a familiar app, and the ability to move money instantly between checking and savings keep millions of customers from switching.
The bank also waives monthly maintenance fees if you meet certain balance or deposit requirements, which nudges people to keep more cash parked there.
The catch is that loyalty runs one direction.
The bank has little incentive to raise savings yields when deposits keep flowing in anyway.
Customers who never comparison-shop effectively subsidize that complacency. **The catch buried in the fine print** Bank of America does offer higher-yield options, including promotional rates on certain savings products and certificates of deposit.
Those deals often come with conditions: minimum opening deposits, balance caps, time commitments, or a requirement to link a checking account.
The headline rate you see advertised may not be the rate that applies to your full balance.
Rewards checking accounts can also boost savings yields, but only if you hit qualifying activity each month — direct deposits, debit card purchases, or minimum balances.
Miss a requirement and the rate can drop back to the baseline. **What to check before you move anything** Start by logging in and finding the actual APY on your statement, not the rate you assume you're getting.
Then look for fees that could eat into any gain: monthly service charges, out-of-network ATM fees, and minimum balance penalties.
If you decide to switch, keep your Bank of America checking account open for a month or two while you test the new setup.
Transfers between institutions can take one to three business days, so avoid moving money you'll need for rent or bills right away.
Also confirm the new account is FDIC-insured and read the terms for rate-change policies — many online banks can adjust yields at any time.
Interest earned in any account is taxable, so a higher yield means a slightly bigger 1099-INT at year's end.
That's still almost always worth it. **The bottom line** Loyalty to a big bank isn't free — it just shows up as interest you never earned.
Checking your current APY takes about two minutes, and the difference between 0.01% and 4% is one of the easiest money wins available to most households right now.
Final Thoughts
If your bank won't pay you a fair rate, the only vote that counts is moving your balance.